Use tax calculation in projects in Brazil tax reform

This article describes how to calculate taxes in projects using the Brazil tax reform solution.

Create a project with Brazilian taxes

You can create a project by specifying fiscal information, such as the operation type and the Código Fiscal de Operações e Prestações (CFOP) code. When you create a sales order line, you can select a CFOP code in the CFOP field. The CFOP codes that are available in this field depend on the fiscal establishment of the site that you selected in the Site field. The tax groups in the Sales tax group and Item sales tax group fields are also updated based on the tax matrix and applicability rules in Globalization studio.

To create a project that uses Brazilian taxes, follow these steps:

1. In Dynamics 365 Finance, go to Project management and accounting > Projects > All projects.
2. Select New.
3. In the Project type field, select an option.
4. In the Project name field, enter values.
5. In the Project group field, select a value.
6. Select Create project.
7. Select the Project section.
8. Select the Journals group.
9. Create and post journals.
10. Select the Manage section.
11. Select a task under the New group and generate it if necessary.
12. Select Project invoice proposals under the Bill group.
13. Select the record and then select the Invoice proposal field.
14. Post the invoice.
15. Select OK.
16. Close the page.

Check the tax calculation results

To check the tax calculation results, follow these steps:

1. Select Project invoice proposals in the Manage tab, and then select Sales tax.
   • The targeted tax codes display.
   • During the transition period, No posting is marked for CBS and IBS to ensure compliance with the current policy from the Brazilian government.
2. Select Project invoice proposals in Manage tab.
3. Select the record, and then select the Invoice proposal field.
4. Expand Invoice proposal transactions.
   • Scroll to the right to view Use override for tax reform, Item tax group for tax reform, and Tax group for tax reform.
   • Based on the applicability rule settings, the default values for the new tax types (CBS, IBS) appear in the Tax group and Item tax group under the Tax reform group.
   • Change these defaults by setting the Use override checkbox to YES, and then specify the desired values in the Tax group and Item tax group.
5. Select Project invoice proposals in Manage tab.
6. Select the record, and then select the Invoice proposal field.
7. Select Sales tax.
   • The targeted tax codes are displayed.
   • During the transition period,No posting is marked for CBS and IBS to ensure compliance with the current policy from Brazilian government.
8. Select Invoice journals in the Manage tab.
9. Select Sales tax.
   • View the targeted tax codes.
10. Select Invoice journal in the Invoice tab after generation.
11. Select Posted sales tax.
    • View the targeted tax codes.
    • During the transition period, Prevent posting of ledger accounting entities for sales tax transactions is marked for CBS and IBS to ensure compliance with the current policy from the Brazilian government.
    • During the transition period, Prevent posting of ledger accounting entities for sales tax transactions is marked for CBS and IBS to ensure compliance with the current policy from the Brazilian government.